Sonder By Marriott Bonvoy: New Apartment-Style Brand

In August 2024, Marriott announced a licensing agreement that will see the world’s largest hotel company add yet another brand. I wanted to provide an update, as details have just been revealed regarding how this brand will participate in Marriott Bonvoy.

Marriott & Sonder enter into licensing agreement

Marriott has entered a long-term licensing agreement with Sonder, which primarily offers apartment-style accommodations in urban markets, including in North America, Europe, and the Middle East.

These properties will be marketed under a new collection called Sonder by Marriott Bonvoy. The expectation is that 9,000 rooms will be added to the portfolio in the near future, and then there are approximately 1,500 more rooms in the pipeline. With this, Marriott’s full year 2024 net rooms growth is expected to be between 6% and 6.5%.

For those not familiar with Sonder, the brand was founded in 2014, and has been growing at a pretty fast pace, with properties in over 40 cities in over 10 countries. Sonder lists many of its properties on Airbnb, and is one of the biggest “hosts” on the platform.

Here’s how Tim Grisius, Marriott’s Global Officer for M&A, Business Development, and Real Estate, describes this development:

“We are excited about the addition of Sonder’s portfolio to our system, which will expand our portfolio of longer-stay accommodations in key markets around the world. Marriott has long believed in providing the right product at the right price point for all trip purposes and generations of travelers. With the planned addition of Sonder by Marriott Bonvoy, we will be able to provide guests seeking apartment-style urban accommodations with even more options in the Marriott Bonvoy portfolio.”

Sonder participation in Marriott Bonvoy

Marriott Bonvoy members are now able to earn and redeem points at Sonder properties. What are earning rates like?

• At Sonder Hotels, Bonvoy members earn 10x points per dollar spent on room rate, and one elite night per night stayed
• At Sonder Apartments, Bonvoy members earn 5x points per dollar spent on room rate, and one elite night per night stayed

Stays at Sonder properties also qualify for the typical elite bonuses. For the time being, you’ll need to book directly through Sonder, and just add your Bonvoy number to the reservation prior to completion of a booking.

For now, members wishing to redeem Bonvoy points at Sonder properties need to book through Sonder’s call center, which can be reached at 415-849-2740. I wouldn’t expect redemption rates to be great.

For now this is being described as “early access,” since you still need to book directly through Sonder, rather than through Marriott channels. However, as of early 2025, the two companies will announce the complete integration of Sonder into the Marriott Bonvoy portfolio, so full earning and redemption opportunities will be available through Marriott’s booking channels. At that point any potential elite perks for stays at these properties will also be announced.

My take on the Marriott & Sonder partnership

On balance, I’d say this new collaboration is good news for Marriott Bonvoy members, since it’ll be possible to earn and redeem points for Airbnb-style accommodations.

I suppose more options are a good thing, though the brand inflation at Marriott truly is endless. In the home sharing and apartment segment, you also have Homes & Villas by Marriott Bonvoy, Apartments by Marriott Bonvoy, and Marriott Executive Apartments.

Now, I’m not surprised to see Sonder not wanting to give up its own brand, since the company is continuing to operate independently. Speaking of Sonder, why is the company suddenly partnering with Marriott, when its identity has long been based on essentially being an anti-hotel brand?

Well, the company has been a financial disaster. The company had annual losses of over $250 million in 2020, nearly $300 million in 2021, and then in 2022, the company went public. More recently, the company reported that its 2022 and 2023 financial statements “should no longer be relied upon,” and the company hasn’t reported any financial results since Q3 2023.

So, umm, we’ll see how long this collaboration lasts?

Bottom line

Marriott and Sonder have entered into a licensing agreement, whereby Sonder properties will be bookable through Marriott channels, and Bonvoy members have opportunities to earn and redeem points.

Sonder offers apartment-style accommodations in major cities in North America, Europe, and the Middle East, and has marketed itself as an alternative to hotels. But now you’ll be able to stay at these properties within the portfolio of a major hotel loyalty program.

What do you make of Sonder by Marriott Bonvoy?